Dixie's Has a Net Cash Inflow for the Quarter of -$108.The

question 70

Multiple Choice

Dixie's has a net cash inflow for the quarter of -$108.The beginning cash balance is $212.Company policy is to maintain a minimum cash balance of $75 and borrow only the amount that is necessary to maintain that balance.How much does the firm need to borrow to have a zero cumulative surplus?

• A)$0
• B)$104
• C)$179
• D)$132
• E)$29

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Definitions:

State Unemployment Taxes

Taxes imposed by state governments on employers based on the taxable wages paid to employees, funding unemployment compensation programs.

Contingent Liability

A potential financial obligation that may arise depending on the outcome of a future event.

Likelihood

The probability or chance of an event occurring.

Contingency

An uncertain future event that could affect financial performance or outcomes.